Connect with us

Tech & Gadgets

Bitcoin: What I Hate, Love, and Fear About Cryptocurrency

Published

on


Bitcoin was born on January 3, 2009, when its genesis block (Block Zero) was mined. The first transaction took place on January 12 between “Satoshi” and Hal Finney. The first “price” of bitcoin was set for $1,309.03 bitcoin. That’s right, it was a fraction of a penny! And now that she’s preparing to become a teenager, bitcoin is worth over $44,000 and has even become legal tender in one country! So what do I hate, love and fear about bitcoin?

what i hate about bitcoin

In my personal opinion, bitcoin as a medium of exchange is inferior. It is very volatile and suffers from slow transaction speed. Compare this with UPI payments in India and bitcoin sounds like a cruel joke.

There is no point in using bitcoin for payment in any country. There are a lot of better options available in the crypto world. You can use stablecoins pegged to the dollar. You can use Hush/Privacy coins like Monero or you can use regular old coins like Litecoin. All of these are faster, cheaper and less volatile.

The other thing I hate is the concept of HODLing – holding on for dear life. There are so many memes about it that many people think it is a really good investment strategy! The concept is that if you buy a little bit of bitcoin and hold it forever, you will become super-rich. I wish life was that easy.

This Internet Meme Shows What HODL Really Looks Like

The third thing I dislike is the concept of “buying the dip”. This means that every time the price of bitcoin falls, you buy more bitcoins. It is an extension of HODLing. This means that you believe that the price of bitcoin will always rise. So whenever prices fall, you buy more.

Buy Rohs By Dip Meme Dip

‘Buying dips’ is now turning into memes

The fourth thing I hate is the bitcoin maximalist. He believes that bitcoin is the only viable digital asset and all other cryptos are sh*tcoins. They are oblivious to the massive innovation being done by Ethereum, Cardano, Solana, Polkadot, Theta, Filecoin and many other awesome crypto projects.

what i like about bitcoin

In my personal opinion, bitcoin is great as a store of value.

A store of value is an asset whose value either remains the same or increases over time. Some of the most popular stores of value are precious metals, real estate, Treasury bills, and even art.

If bitcoin is accepted globally as a store of value, then in my personal opinion, its total market cap would be comparable to that of gold.

Depending on the source of your information, the market capitalization of all gold in the world is between $8 and 10 trillion. Hence the long term market cap of bitcoin could be between $8 to 10 trillion.

Considering the maximum supply of 21 million bitcoins, I think a reasonable long term value would be somewhere between $380,000 and $476,000. I expect to see this price by 2030 AD.

This is subject to two important caveats – blockchain technology is not “broken” and there are no meteors crashing into our beloved planet 🙂

what am i afraid of bitcoin

Bitcoin is completely dependent on technology. If a major flaw is found and exploited, bitcoin will immediately lose its value and become zero.

While blockchain is a robust technology, it has been hacked in the past – on 15 August 2010 when a single transaction created 184,467,440,737.09551616 bitcoins.

That’s over 184 billion! Yes, you read that right. We all know that the total number of bitcoins that could ever exist is 21 million. But here we suddenly have hundreds of billions of bitcoins!

Within a few hours the problem was resolved. This “bad” transaction no longer exists on the blockchain. Nor did the billions of bitcoins created by hackers. But the 0.5 bitcoins that were consumed by the transaction still exist and are indelible evidence of bitcoin hacks!

Could there be another successful hack? Of course, could. And that’s what scares me the most.


Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him on LinkedIn.


Interested in cryptocurrency? We discuss all things Orbital with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

.

Copyright Indian Lekhak Limited 2021. All Rights Reserved